Nearly all banks reported gains in net income for the six months ended June 30, according to figures released recently by the Federal Deposit Insurance Corp. The Bank of Stockton saw earnings increase 118% to $9.6 million, due mostly to gains in the bank's investment portfolio, which were the highest in the bank's history. In addition, Union Safe Deposit Bank saw a 14% increase to $3.1 million, and Farmers & Merchants Bank of Central California saw a 19% increase to $5.6 million.

Smaller banks also saw profits rise. The Bank of Agriculture and Commerce saw earnings increase 36% to $1.1 million. The Bank of Lodi saw a 10% increase to $580,000. Pacific State Bank saw profits increase 55% increase to $550,000.

On the losing side was Delta National Bank, whose earnings declined 19% to $410,000. Also unprofitable were Service 1st Bank and Community Bank of San Joaquin, both launched late last year. Community Bank, which expects to be profitable in the next 18 months, has $31.6 million in assets. Service 1st has $24.3 million in assets.